Major U.S. corporations are gearing up for a legal battle over $146 billion in tariffs imposed under former President Donald Trump's administration. Companies including Costco and Ray-Ban are filing lawsuits in anticipation of a U.S. Supreme Court ruling that may deem the "reciprocal tariffs" illegal, requiring the government to return the collected tariffs.
These reciprocal tariffs, enacted under the International Emergency Economic Powers Act (IEEPA), were a cornerstone of Trump's economic policy, targeting countries with which the U.S. had significant trade deficits. Now, with the Supreme Court expected to deliver a verdict soon, businesses are rushing to ensure they are first in line for potential refunds.
Historically, large corporations have avoided challenging government policies. However, the significant financial stakes involved have prompted major players to take legal action, marking a departure from previous practices dominated by smaller enterprises. Axios reports that these moves could lead to considerable disruption if the tariffs are overturned, as reversing such measures could be more complex than their initial implementation.
The Trump administration's use of the IEEPA to impose these tariffs sparked criticism for overstepping congressional authority. The reciprocal tariffs, alongside commodity-specific tariffs under Section 232 of the Trade Expansion Act, were designed to protect American industries but have faced legal challenges from affected states and businesses.
Should the Supreme Court find the tariffs illegal, the logistics of refunding billions could pose significant challenges. The tariffs have already been transferred to the U.S. Treasury, complicating the potential refund process. Economic experts warn that the integration of tariff revenues into general funds may hinder the government's ability to issue refunds efficiently.
Tony Guloata, from tax advisory firm Ryan, emphasized the urgency for companies to act, advising that early legal filings could secure a place at the front of the refund queue. As the legal proceedings unfold, the outcome will have far-reaching implications for U.S. trade policy and the affected businesses.
Copyright ⓒ 뉴스로드 무단 전재 및 재배포 금지
